David Rotfleisch, a tax lawyer with Rotfleisch & Samulovitch P.C. in Toronto, was recently interviewed for an article in Investmentexecutive.com about tax and cryptocurrencies in Canada.
Rotfleisch explains that while none of the tax aspects surrounding cryptocurrency is straightforward, coin-to-coin trades are particularly complicated. Some people sell, say, Bitcoin to buy Ethereum and then dispose of the Ethereum to acquire Cardano, he explained. Thus, there is a need to record every transaction with the U.S. dollar amounts being converted to Canadian dollars. Taxpayers would also need to be able to appropriately report gains and losses at the end of the year.
“Record-keeping is a massive problem for a lot of these guys,” Rotfleish said. “So sometimes a large part of our job is helping the clients to reconstruct their trading history records.”
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